Lowes Magazine Issue 115

INVESTMENT

Chancellor’s Summer Statement IN HIS SUMMER STATEMENT, CHANCELLOR Rishi Sunak set out the Government’s measures to help kickstart economic recovery and reduce unemployment as the country moves out of lockdown. The measures were largely focussed on keeping people in jobs as companies assessed their situation on All eyes now will be on the Autumn Budget, which usually takes place in November. While the details will be affected by how effective the fight against the Coronavirus has been at the time, any spike in Covid-19 cases may stall recovery measures, the Chancellor has already said this will include spending and tax reviews and measures to help pay down the cost to the Treasury of the schemes being used to support jobs and the economy during the current crisis.

furloughed staff in the wake of lockdown and creating new jobs, in particular for young people entering the employment market. They also looked to boost the leisure and hospitality industries through a six-month reduction in VAT, and to re-vitalise the housing and building markets through a temporary increase in the nil rate band for residential stamp duty from £125,000 to £500,000. These were supportive measures which government is funding in large part through further borrowing.

Tax Tables 2020-2021 Our free tax table booklet is updated yearly to help ensure you have the information at hand to manage your taxes effectively If you would like copies for family, friends or colleagues, please call 0191 281 8811 or email enquiry@Lowes.co.uk

SP ‘Preferred’ plan maturities THE STOCK MARKET CONDITIONS HAVE understandably resulted in several potential

Maturity Date

Index Link FTSE 100

Index Change

Plan Gain

Provider

structured product maturities being deferred until a subsequent anniversary, when the potential gains will be higher but unfortunately this was not the case for some fixed term plans. During the quarter, eight such plans that had been utilised in client portfolios reached their maturity date and whilst the results are in some regard disappointing, none of these structured products recommended by Lowes matured with losses, despite some double digit falls in the underlying indices to which the investments were linked. The structured products recommended by Lowes can offer equity-like returns, whilst protecting capital from all but the most adverse market conditions and although positive results are of course the objective, this quarter’s maturities demonstrate the value of the capital protection element of these investments. The table shows the performance of the Lowes ‘Preferred’ structured products held by Lowes clients that matured in the second quarter of 2020. All of these maturities were fixed, six-year term products.

Morgan Stanley

-16.97% 0%

22/04/20

FTSE 100

-12.97% 24.25% 1,2

Investec 28/04/20

Euro Stoxx 50

Meteor

12/05/20

-8.47% 0%

Société Générale

FTSE 100 FTSE 100 FTSE 100 FTSE 100

-11.77% 0% 1

01/06/20

Investec 09/06/20

-6.86% 28.50% 1,2

Morgan Stanley Morgan Stanley

10/06/20

-10.24% 0%

-10.24% 0%

10/06/20

Euro Stoxx 50

Meteor

22/06/20

2.25% 22.48%

1 Deposit based; 2 Income plan

13 Lowes.co.uk